Extract of Note 2.2 referred to in the Auditor’s Report:

Going concern

The ability of the Group and the Trust to continue as going concerns as at the date of the financial

statements is dependent on:

(i) the successful outcome of the refinancing of the Trust’s US$130.00 million facility (“Top Up

Facility”) of which the entire outstanding amount of US$128.70 million falls due on 30 April 2010;

(ii) the Group’s compliance with all its existing loan covenants. However, the continuing economic

downturn has resulted in a perceived drop in the value of container vessels. This may cause the

Group to breach minimum asset value to loan covenants; and

(iii) the successful outcome in negotiating an agreement on its liabilities in relation to four contracted

13,100 TEU containerships with a committed amount of US$711.73 million and three contracted

4,250 TEU containerships with a committed amount of US$207.00 million, all of which are due

within 12 months from 31 December 2009 (“contracted containerships”)*.

The Group also has contingent liabilities with respect to the unfulfilled capital commitments

(Note 21).

The Trustee-Manager is presently in discussions with its lending banks to permit the Trust to

extend the repayment date for the outstanding amount of US$128.70 million under the Top Up

Facility and amend the loan covenants relating to the bank borrowings. The Trustee-Manager

believes that the financing issue will be resolved and hence considers it appropriate to adopt the

going concern basis.

In addition, the Group’s container vessels are leased out on long-term, fixed-rate charters which

are valued higher than the current charter-free vessels. There is no universal method of

valuation and all valuations obtained under the current economic condition are subject to

various assumptions which have not been agreed upon unanimously by all parties especially

shipowners, ship financiers, brokers and valuers.

The appropriateness of the going concern assumption on which the financial statements are

prepared is dependent on the continued support from the Group’s banks, related parties and the

Group’s ability to generate sufficient cash from its operations to meet its obligations as and

when they fall due.

If these are not forthcoming, the Group and the Trust may be unable to continue in operational

existence in the foreseeable future and adjustments would have to be made to reflect a situation

where the assets may need to be realised other than in the normal course of business and at

amounts which could differ significantly from the amounts stated in the statements of financial

position of the Group and of the Trust. In addition, the Group and the Trust may have to provide

for further liabilities which may arise, and to classify the non-current assets and non-current

liabilities as current assets and current liabilities respectively.

The financial statements do not include the adjustments that would result if the Group and the

Trust were unable to continue as going concerns.

* As at 31 December 2009, the Group’s unfulfilled capital commitments was US$138.0 million and the existing capital

commitment was US$780.7 million.